Resouro Strategic Metals has kicked off trading on the ASX under the ticker ‘RAU’ this morning, up 28% in early business after raising a successful $8 million in a public offering.

Resouro is a Canadian-based mineral exploration and development company focused on the discovery and advancement of economic mineral projects in Brazil, including the rare earth elements and titanium Tiros Project and the Novo Mundo and Santa Angela gold projects.

RAU’s stellar debut has been closely watched by backers by Regal Funds Management and a who’s who of small cap mining investors including Jeremy Bond’s Terra Capital and the Flannery Family Office.

The rare earths and titanium mineral exploration and development company issued 16 million CHESS Depositary Interests (CDIs) at $0.50 each, bringing its total market value on debut to $46.1 million.

Brazilian Rare Earth Elements (REE) and titanium

Resouro’s main focus is its Tiros Rare Earth Elements (REE) and titanium project in Brazil and the funds raised will be used primarily to deliver a maiden JORC resource for the project.

It covers a vast area in the mineral-rich Minas Gerais State and recent drilling results indicate the 450km2 project may have the poteantial to become an industry-leading, multi-generational mine with rare earth oxide grades comparable to the best clay-style deposits in the world.

The site also benefits from excellent infrastructure including roads, railways, ports, power, water and a skilled local workforce.

Brazilian rare earths companies are clearly having a moment with actual Brazilian Rare Earths (ASX:BRE) making the most of its soaring share price raising $66 million this week (covered before it even launched).

Founder, CEO and major shareholder Chris Eager is a mining engineer with 35 years of experience in the mining industry. Eager was a co-founder of Monterrico Metals PLC which unlocked significant value in the Peruvian Rio Blanco copper project that was acquired in 2007 at a valuation of ~US$200 million. Eager also co-founded Asia Energy PLC and CoalMont Ltd.

Eager says RAU’s priorities are clear.

“The company’s immediate focus for the company is to increase shareholder value by advancing the Tiros project.”

RAU Tiros project

Eager says funds raised will largely be applied towards: progressing exploration activities including a targeted drill program with an aim to delineate a JORC compliant Mineral Resource; and undertaking chemical and metallurgical testwork to determine scoping level requirements.

“And, subject to the results of the exploration activities, commencing preliminary economic evaluation and undertaking preliminary technical studies.”

The company has an experienced board and management team in place with a broad range of mining, project development, financing, operational, technical and corporate skills in the resource industry.

Eager himself brings an impressive track record from previous ventures. He was instrumental in the success of Asia Energy (IPO at 75p, peaking at 910p) and Monterrico Minerals (IPO at 52p, peaking at 600p, and eventually taken out at 350p) on London’s AIM market.
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